13 March 2015

Vedanta Resources plc
Update by Cairn India

The following statement was issued yesterday by Vedanta Resources Plc's subsidiary Cairn India Limited to the Stock Exchanges in India.

12 March 2015


Cairn India Limited

Cairn India Limited has received an order from the Income Tax Department today for an alleged failure to deduct withholding tax on alleged capital gains arising during 2006-07 in the hands of Cairn UK Holdings Limited (CUHL), our erstwhile parent company, a subsidiary of Cairn Energy Plc.

This was in respect of the transaction of CUHL transferring the shares of Cairn India Holdings Limited (CIHL) to Cairn India Limited as part of internal group reorganisation in 2006-07 to facilitate the IPO of Cairn India Limited.

A demand of approx. INR 20,495 Crore (comprising tax of approx. INR 10,248 Crore and interest of approx. INR 10,247 Crore) is alleged to be payable. Cairn India Limiteddoes not agree with this alleged demand and will pursue all possible options to protect its interest.

Cairn India has always been fully compliant with all Indian Income tax laws. Income tax assessments including transfer pricing assessment were duly completed for FY 2006-07, earlier.

As was communicated earlier, from the media reports we understand that tax demand has also been made by the Income Tax Department on CUHL on this matter.

For further information please contact:

Communications

Roma Balwani

President - Group Communications, Sustainability

and CSR

Tel: +91 22 6646 1000

gc@vedanta.co.in

Investors

Ashwin Bajaj

Director - Investor Relations

Anshu Goel

Vice President - Investor Relations

Radhika Arora

Associate General Manager - Investor Relations

Finsbury

Gordon Simpson

Tel:  +44 20 7251 3801

Tel:  +91 22 6646 1531

ir@vedanta.co.in

About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visitwww.vedantaresources.com.

Disclaimer

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.


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